NASDAQ is known as the National Association of Securities Dealers Automated Quotations. It is an electronic marketplace for trading securities that operates globally from New York.
On the NASDAQ stock exchange, more than 3000 stocks are listed that are traded in a quick and transparent manner.
This exchange was the first-ever electronic stock exchange in the world.
It is an American stock exchange that comes second in the list of top stock exchanges operating in the world.
This is due to the higher market capitalisation of shares traded on the exchange.
Nasdaq Inc. is the owner of this stock exchange platform. It is also known as the first electronic stock exchange in the world.
Some of the giant companies that are listed on the NASDAQ index are:
- Microsoft
- Oracle
- Amazon
- Apple
- Intel
NASDAQ operates with the most efficient computerised trading model, and it is continuously developing according to the evolution of technology.
This was why giant stocks from all around the world are willing to list on this exchange. It operates with more than 25 markets in the world.
Origin of NASDAQ
Almost all the stocks that are listed on the NASDAQ stock market are included in it. NASDAQ was launched at a starting price of $100 in the year 1971.
During the year 1973 and 1974, the annual change was approx -31% and -35%. After maintaining a positive annual change in 1975 and 1976, it felt down in 1977.
In 1991, the exchange had recorded a major positive change of 56.86% and closed at 586.34 points. A milestone recorded in 1995 when the index closed above and touched $1000 for the first time.
During the period of 1995-2000, the market was growing with a boom, and in this period, the index has grown nearly 400%.
At this point in time, NASDAQ was also maintaining a price earning ratio of 200. In 1999, about 12 largely capitalised stocks listed with this exchange rose 1000% in value.
After giving a constant return from 1996 to 1998, the index recorded another milestone of a closing price of 4069.31 points in 1999.
The exchange prices fell from 2000 to 2002 because after maintaining all-time high prices from 1995-2000, the index touched the lowest price of 1,108.49 on October 10, 2002.
The closing price of the year 2002 was recorded at 1,335.51 points. After this drastic change, the index started giving an 8% to 9% positive change in the prices until 2007, before the beginning of the global recession period.
During the recession period of 2007-2009 in the USA, it had faced a tremendous downfall in the prices. Another major price fall after the year 2002 was on September 29, 2008, when the index was closed below 2,000 points with a 9.14% fall.
After surviving the recession period, the index started generating positive annual price changes with gradually increasing prices.
Bull Market after 2010
After facing the bearish trend till 2010, the market starts gaining momentum in prices. Since September 7, 2000, the market closed above 4,000 points for the first time on November 26, 2013.
The annual high in the year 2013 was recorded at 4,176.59 points on December 31, 2013.
On March 2, 2015, the index set another highest record of closing above 5,000 points for the first time since 2000. And after this, the trend of rising prices was maintained for some time.
In 2020, the index reached down to 6,860 points. This was because of the COVID-19 pandemic situation.
When the government’s lockdown was completely removed, the index touches 10,000 points for the first time in history. On August 6, 2020, it made another record of closing above 11,000 points, and by the end of the year 2020, the index managed to close at 12,888 points.
10 Years Prices of NASDAQ
The below-placed table indicates the prices of the NASDAQ index over the past 10 years. All the performance of this index and the annual change in percentage have indicated in the table.
| Year | Year Opening | Year Closing | Year Low | Year High | Average Closing Price | Annual Change (in %) |
| 2011 | 2,691.52 | 2,605.15 | 2,335.83 | 2,873.54 | 2,677.44 | -1.80% |
| 2012 | 2,648.72 | 3,019.51 | 2,648.36 | 3,183.95 | 2,965.74 | 15.91% |
| 2013 | 3,112.26 | 4,176.59 | 3,091.81 | 4,176.59 | 3,541.29 | 38.32% |
| 2014 | 4,143.07 | 4,736.05 | 3,996.96 | 4,806.91 | 4,375.10 | 13.40% |
| 2015 | 4,726.81 | 5,007.41 | 4,506.49 | 5,218.86 | 4,945.55 | 5.73% |
| 2016 | 4,903.09 | 5,383.12 | 4,266.84 | 5,487.44 | 4,987.79 | 7.50% |
| 2017 | 5,429.08 | 6,903.39 | 5,429.08 | 6,994.76 | 6,235.30 | 28.24% |
| 2018 | 7,006.90 | 6,635.28 | 6,192.92 | 8,109.69 | 7,425.96 | -3.88% |
| 2019 | 6,665.94 | 8,972.61 | 6,463.50 | 9,022.39 | 7,940.36 | 35.23% |
| 2020 | 9,092.19 | 12,888.28 | 6,860.67 | 12,899.42 | 10,201.51 | 43.64% |
| 2021 | 12,698.45 | 13,377.54 | 12,609.16 | 14,095.47 | 13,384.83 | 3.80% |
This table shows the year-wise NASDAQ data, such as the opening and closing prices of the year. The year high and year low indicates that what are the highest and lowest prices recorded during the whole year.
The annual change in percentage indicates the percentage change in the prices from the past year to the current year.
A few years had a negative price change, but others had a higher positive change in the prices. This also conveys that the prices are gradually increasing. Traders can compare the prices per year for better understanding.
Trading Broker
For trading on NASDAQ, traders can use Brokereo. It runs on the MetaTrader4 Trading Platform and offers web, desktop, and mobile trading. It involves zero commission charges on transactions made by traders.
Traders can also enjoy a wide range of education and investors’ information resources with a free demo account.
It has a dedicated customer service team that is available 24/5, and high Leverage is available for trading. Traders can select among different types of accounts that are most suitable for them.
The Bottom Line
NASDAQ is among the top exchanges globally and has grown widely in the past decade, generating good returns for investors. It has also survived the pandemic situation and maintained a higher closing record for the year 2020.
Many trading assets are available for trading with this exchange, like derivatives, commodities, currencies, stocks, and various others.
It is the second-ranked stock exchange in the world for a reason, which is due to its transparent and quick trading feature. Select a reliable broker for trading with the NASDAQ stock exchange.
